Questor Insurance News

The outlook for the UK's economy has well and truly brightened and consumers are planning to celebrate these improved conditions by lighting up their lives with even more sunshine.

According to the latest First Rate Holiday Confidence Index - which questioned 5,000 adults - UK consumers are planning to indulge in more trips abroad in the coming 12 months as feelings of greater job security and economic certainty abound.

The Index showed that the proportion of people who plan to take a holiday has increased from 54% to 57% year-on-year.

Further figures from the research showed that one in ten UK consumers plan to up their holiday quota over the next year, with the number of people taking two trips overseas also increasing year-on-year. This has risen from a figure of 35% to 37%.

Brits’ annual getaways are such important features of their 2014-2015 calendars, that 44% admitted that they would be prepared to slash spending in other areas to ensure they had enough in the overseas holiday spending pot.

Commenting on the figures, First Rate exchange services head of innovation and insight Alistair Rennie, said:

“Against a backdrop of low inflation, a growing economy and a sense that jobs are more secure, it’s no wonder Britons feel more confident to plan holidays abroad.

“Overall confidence has gone up 2% - the key drivers are an improving view of job security and improving view of personal finances. People’s finances have improved although household income has not reached the pre-recession level. When we compare those who intend to travel and those who don’t, the real driver is whether people feel secure in their jobs.”

Consumers also planning to spend more on holiday

Abta’s 2014 Consumer Holiday Trends Report revealed that as well as taking an increased amount of holidays, Brits abroad are also planning to up their travel spending budgets.

20% of the UK travellers questioned anticipate spending more on their holidays in 2015, against 15% who said they will spend less.